Question for Tax experts

[Argo]

When leasing a car, is it better to pay sales tax upfront (as opposed to financing it) so that you can get deduction on your federal return that year? Do you need to itemize to claim sales tax deduction or can you claim it regardless?

I'm sure somebody here knows. Thanks in advance.

P.S. If I'm not mistaken sales tax deduction is new this year, right?

 

[ElFenix]

you have to itemize to take a sales tax deduction. you can only take a sales tax deduction if you don't take a state income tax deduction. pick your poison, if you will.

 

[Argo]

So in other words the only time it would make sense to pay tax upfront is if the sum is larger than your standard deduction.

 

[b0mbrman]

Why not post here? - Link

Not being a jerk...but I'm sure that would be checked more often by the tax experts

 

[Argo]

Originally posted by: b0mbrman
Why not post here? - Link

Not being a jerk...but I'm sure that would be checked more often by the tax experts

Just did. Didn't realize we had a tax thread going - I don't pay attention to the stickied threads.

 

[ElFenix]

Originally posted by: Argo
So in other words the only time it would make sense to pay tax upfront is if the sum is larger than your standard deduction.

if the sum of your itemized deductions is larger than the standard then itemize. if not, then don't bother paying tax upfront, correct.

iirc, the deductible sales tax provision is a very short time thing, maybe just two years. they might renew it at the end, they might not.